won't be around much longer and said that the u.s. would destroy the country if it is forced to defend itself or its allies. the u.s. and north korea are still technically at war. both sides agree to an armistice after the korean war. the island chain reopened to tourists on october 3. that is after 25% of homes were destroyed two weeks ago by hurricane irma. a spokesman said power services are now restored to customers that could not receive them. the marathon in key west arports are reopened and cruise ship returned to key west for the first time on sunday. there have been protests of the dakota access pipeline. they are borrowing an additional $5 million to cover the enforcement costs. bring the state owned bank in north dakota to 39

million. iraq'save closed across kurdish region. they vote in support of independence. it is not expected to be resulting in independence anytime soon but it was held as historic by kurdish leaders. official results are expected tomorrow. global news, 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. ♪ live from bloomberg's world headquarters.

we are 30 minutes from the close of trading, u.s. stocks are falling as tech gets hit. the question is what did you miss? the u.s. and north korea get more heated. the u.s. has declared war on it. a triple threat of bankers, mario draghi spoke today, janet yellen follows a suit in the coming days with a dozen other officials in between. the price to see bruce springsteen on broadway could set you back $10,000. can you guess who is getting scammed? what did you miss? divergent tests. -- pats. sts. they are trying to boost inflation. the u.s. federal reserve announced to the return to normal last week. a plan to reduce their balance sheet but not every other policymaker is following suit. is nathanlp us

sheets, chief economist at the this place. in theot to central bank united states. still, game on potentially. what is the risk for a policy surprise? a policy error from the federal reserve? willthink that sad continue to be very interdependent. it will respond to the economy. probability that the fed makes a mistake over the next six months is relatively small. on the longer horizon, the fed might misjudge the inflation process. come either higher or lower than what they expect. i would say that that is a risk. hopefully over the longer

horizon, the fed will remain vigilant. about what thek fed is projecting, it is still looking for three interest rate increases next year. introduces the probability of interest rate increases from three to two. do the dots matter? i think at best, the dots are indicative, they are a suggestion of what this one feels would be a reasonable monetary policy at this moment. the data may change, the economy may change, the global environment may change. by this time next year we are likely to have several new members including a new chair. that committee may do things very differently than this one does. >> can i ask you, looking at

whether central -- what's other central banks are doing here. a inflationthere is problem. canada has surprised the market with two hikes. that in someel deep way this cycle of central-bank policy which has been so stimulated for so long, is now shifting somewhat. , policy willsaid remain gradual. it feels that the wind is starting to turn and the central banks are now thinking about how with this exceptional stimulus and this exceptional policy and move our stamps to something that is more normal for the historical standpoint. >> this is a map that highlights that divergent path for the

banks. >> that need updating because we canada and the united kingdom in the dovish category. >> we do have mario draghi speaking to the european parliament and it sounded as though he may be trying to talk down to euro. >> we still see some and certainty -- some uncertainty. most notably, the recent volatility in the exchange rate represents a source of uncertainty which requires monitoring with regards to possible implications for the output for price stability. >> he is talking about uncertainty relative to the foreign exchange market. if you look at the volatility for the euro, it is not there. is he trying to say that the ecb could become more hawkish? how does that work in the fed?

could the system handle to central banks -- >> i agree with that point. i think that mario draghi is concerned with the exchange rate and primarily about its level and where it might go. europe is enjoying a strong can absorbcovery and a stronger euro than has been the case in the past. nevertheless, if we see the euro appreciate substantially from here, it could create some challenges for mario draghi and make it a harder -- make it harder for him to move toward mobilizing his balance sheet and bring short-term rates up about negative territory. >> perhaps he was trying to help himself there. we ask you about all these different global events because as a former undersecretary of the u.s. treasury you saw --

treasury, you oversaw foreign affairs. what is it like when you don't have enough people in treasury to get things done? thehe good news is that civil servants, the career step of the treasury are very good. deskspeople are at their working every day in a very diligent and effective way. nevertheless, not having these political appointees in play removes a major source of policy creativity, sounding boards for the secretary. those are the people that the secretary turns to when he needs to vet his ideas. when he is thinking about how to deal with various issues. at the major lack treasury and the administration more broadly that those key

political appointees are not yet in place. >> they are not essential. it can operate without them. if you want to be restricting the amount of pay tax you are giving out to these departments, it is the same thing in the state departments. you can't function without them. >> i would say that the process wayoperate in a reasonable without those political appointees. >> not optimal. want the bestu outcomes, you need some additional advisers and vetting of various policies. steve mnuchin has talked about offering financial industry executive advisory pol ls. that is another option, outsourcing. >> i think the idea of bringing in outsiders and allowing them to advise and communicate in a close way with the secretary is

a good one. the only caveat i would have about that is you have to remember that if they are also at a private firm, they could have conflicting and competing interests. that each o -- that needs to be taken into account. that is not the case if you have a confirmed assistant secretary, deputy secretary, they shatter those competing interests. it focuses only on u.s. policy. us,e will be sticking with we will have more with nathan on the german election results and what it means for europe, a grand bargain on the continent. from new york, this is bloomberg. ♪

♪ angela merkel sales to another term as german chancellor. we are back with nathan sheets, chief economist and former undersecretary of the u.s. treasury in term discharge of international affairs. what does this nightmare victory mean for angela merkel and the ever that she and emmanuel macron are trying to put into effect to bring change in europe? >> i think given her soft victory and by comparison her , the strength of the far right in the election, her flexibility in interacting with europe is going to be very

constrained. how far can she go? negotiating british demands? how far can she go in taking steps to help the greats? all that said, merkel is a political magician. she would not have won her fourth term if it were any other way. she may yet be able to find a way to cobble together a robust issueson and move on domestically in a way to get her flexibility on europe. it is going to require some creativity on her part. >> if her flexibility is limited, does that mean we have the best that- the european economy can offer? is it all downhill from here?

>> i would emphasize that what we are seeing in the economy is a cyclical recovery. it is reflecting the fact that there is a lot of slack that monetary policy is stimulating. recoveries don't run forever. the main question is how far are they going to go on structural reforms and bonded together the currency union -- binding together the currency union? how far do the peripherals go? i do think this is the best performance we will see from europe but when we look back on it, this will be remembered as the time of a particularly strong growth. >> i would make the point that this is a realistic result for whata merkel given happened over the last 12 years. she is at the forefront of

europe given the challenges they face. think herw why you job is going to be that much more difficult as a result of this german election? beyond the fact that there are challenges within the eurozone right now that say we don't want more -- you have the fracturing of the establishment parties. even if the likes and franc -- of france and the netherlands has been positive. the push forward for europe is going to be a challenge, mario draghi has always been it to be the stimulus. >> a year ago, we were very worried that angela merkel would face a ferocious election campaign. also, that she was vulnerable. in the event that she was challenged by schulz on the left, which allowed the election to be -- it felt interconnected.

what we see here in this result, we see the reality of what we knew a year ago. there are a meaningful fraction voters who are disaffected. they want less europe, not more europe, they are not in favor of her policy on refugees. somehow, she has to find a way to placate those people, i think that is going to be hard, that is why she will be constrained. she may need to come up with a whole new formula for german politics where she can merge together the centerleft and mobilize continued support. it will be a challenge. >> she is central in the coalition. i don't think we should overlook

that. what do you think this means for future elections? we clearly have this way toward populism if you will. been an increasing movement with the spanish referendum coming up. we have the big italian general election. bloomberg andthe we see that4, overall, the are down on the year. it almost adjusts that investors are pricing in some sort of risk around those events, what do you think? >> the french elections were generally good news for europe economicngoing integration. with this one, there are some more question marks.

i think those spread you highlight our exactly on point. the big question in everyone's mind is what happens next year when we have that italian election? i've spent a lot of time looking at the various parties and positions. i think it is still way too close to call. i think a five-star movement is lagging. resultse various other like this one we saw in germany. it fell short of a five-star victory. it may still pose problems for europe. >> we will be watching those spreads. great insights, thank you so much. of next, the possible contract with the mta.

we will tie you which one, next. this is bloomberg. ♪

♪ >> now time for the bloomberg business flash. look at some of the biggest business stories. morgan stanley will pay a $13 million fine. is traded inrk client accounts to generate sales fees. the short-term trade of more than 3000 customers. morgan stanley neither admitted or denied the claim. court found pfizer's copycat drug. has one $70 million -- won

$70 million. available -- fx plus will be available to customers. that is your bloomberg business flash. >> time for the stock of the hour. out from media is up nearly 15%. may be showing figure market moves to come. oliver renick joins us now. it'll say something to be doing with the npa. oliver: it is a big source of money. that is an important company.

outfront media is a big advertiser for transient rep. over 20% of the revenue in the past year. they have basically deal of the mta to do advertising for a contract. isnda but that does this, it a huge amount of eyes. traffic publicly transit authority in the u.s.. this is news today that they will have the opportunity to extend the contract that they have already had. this is important. terminal show in the -- the big macro idea. this company is actually the biggest gainer in the valley stock category -- value stock category. here wherelook right we have these bars, we did this function earlier. what it is showing you right now

is that the blue dots are all the way to the left of those orange.. the orange dots are the historical average on where that valuation is. fact that those blue dots are to the left -- that is a stop it trades at a much lower premium and that is a big mover today in the market. >> i am wondering if we will see more of those ads. that is a different point. what is the larger trend when it comes to bally stocks? -- value stocks. ? it should be good news for them. they couldn't really do much. it has been that push and pull. it has underperformed grossly. it has been a decade in which growth stocks have been pounding value companies. what we have seen is that there

is potentially signs of what people like tom lee and j.p. morgan have want about. that is what happens when we get to the second chart here. this is the value catch up. we are looking at the value index. that is our growth index. is a nicean see here little pop in value shares. is anotherpanel version of this which is that the pricing -- this is the spread that have gotten even more blown out. this blue line gets higher and growth stocks are even more expensive than value stocks. even in their own relationship, they are pricey. >> does this concern you? in the past we have seen value. it is very hard to know when that actually comes.

>> oliver renick, bloomberg starts reporter -- stocks reporter, thank you very much. >> you can see is a risk in equities. the dow is done by a quarter of 1%. this is bloomberg. ♪ who knew that phones would start doing everything?

entertaining us, getting us back on track, and finding us dates. phones really have changed. so why hasn't the way we pay for them? introducing xfinity mobile. you only pay for data and can easily switch between pay per gig and unlimited. no one else lets you do that.

see how much you can save. choose by the gig or unlimited. xfinity mobile. a new kind of network designed to save you money. call, visit or go to xfinitymobile.com. ♪ >> u.s. docs starting the week

-- stocks starting the week. the treasury getting a bit higher. after north korea ratcheted up the tensions further. i am julia. >> i am scarlet. >> if you are tuning in live on we want to welcome you to our closing bell coverage. let's begin with our market minutes. a pullback in u.s. equities with the s&p 500 off by a quarter of 1%. the nasdaq is the big loser, off by 9/10 of 1%. the likes of facebook and apple are selling shares as well. you can pull out a lot of reasons why investors are cautious. into the tech losses, let's start out sector wise and

look for the s&p 500. energy is up 1.5%. helped out by the rally we saw today in oil. tech is down 1.5%. the nasdaq is down considering it is over weighing into the sector. let's start up with facebook, facebook is down in a big way. down for .5%. the company said they want be offering a new class of shares. downso have microsoft 1.5%. trip advisor, that company is they got cautious on the numbers. look at netflix down 4.7%, the

worst day of the year since november of last year. it appears to be more of that high data technology, internet is selling. the bondlook at markets, there are a number of macro things going on. i can show you what is going on for the german ten year yield. ? being raised about that draw -- questions being raised about that draw and what it means for the spanish referendum. of course, the election had a bit of softness, i think it makes a bit of sense. let's give you a dive into the bloomberg. this is #279. this is according to cftc data.

even with the liquidation that yields,seen in the interesting at times in these markets. today, itollar moving ended last week at 11950. 119.50. the social democrats are going into opposition. the yen is reversing some of the declines we saw earlier. president trump recent comments amounts to a declaration of war. that of a snooze earlier on that one.

it is a lot of rhetoric and we have seen a lot of rhetoric already. boosthetoric continues to gold prices. you can see gold up to 13. the big moves of the day are clearly energy sectors. brent approaching $68. turkey threatened to shut down cruise shipments because the kurds are holding an independence referendum. opec confirmed that they and their partners and plummeted more than 100% of their production cuts last month. i am tightening supplies in the short term. yet inventories at nine year lows. the future price is trading below the current price. those are today's market minutes. what did you miss? stocks like icarus could be buying a little too close to the

sun. our next guest is that they will crash and burn. will outline the major market themes. some people think they might. didn't think that was a possibility. i will try to bring some sizzle into the conversation. stocks are having their best year. since 2013. the fourth quarter is typically the best. do you see more strength ahead? >> typically started to exhibit some sort of momentum behavior. performance over the first record as of the year and in the fourth quarter. , bothas been less obvious

in terms of the u.s. and emerging-market stocks. on aggregate, the performance has been reversed. that would be some argument and perhaps a little caution. price action is interesting. we have seen this sort of behavior before and it really is a pain trade day where the stuff that is done poorly all year has flown. there are some idiosyncratic stories which you highlighted. broadly speaking, it is a day when he looks like it is getting compressed, it is not unusual for the day of the month and end of the quarter. looking ahead to the fourth quarter, what does that set us up for? themes that investors will be grabbinppling with?

then the u.s., i think issue is not what the fed will do but who will do it. we can judge what janet yellen might think but until we know if it is her or gary cohn or somebody else in charge of the fed next year, it is kind of pointless speculation. ecb, i think it has been fairly well telegraphed by this point. next they will announce some moderate paper, downshifting asset approaches. that will take six or nine months and then they will be assessed. i'm not sure there is an impact for central banks. often it is the case that investors -- the ones who are not fared well grab onto a theme. the lowest hanging fruit and run with it.

it is there to be had, the whole trump trade at the end of last senseit was wrong in the of all the hopes of fiscal reform and what have you and reflation have been proven wrong but you don't get the money back if you performed last year. >> tie it all together, what leads? it depends on what you are referring to. as a macro guy, i tend to think that fixed income and credit are the real underpinnings and equities will eventually follow where they lead. >> i just made the point about the flip too short. -- to short. flipped funds have slightly to long. 200-7000 --bout

contracts. this lack of clarity about who will be driving the bus next year is a real incentive. go?here do you >> emerging markets are the example. that has been the after former, still relatively cheap compared to many developed markets, one -- one may have been arguing -- after seven years of underperformance, are you going to unwind all of that after a year? -- one may have been quite possibly not. soen the growth dynamic in many foreign markets, it still is pretty good. >> can we bring geopolitical tensions into this?

thele are just amazed by fact that we have this war of words between the united states and north korea and north korea essentially accused the united states of trying to start a war were summoned to that effect. we did see a little bit of a selloff for stocks. the potential threat of an h-bomb -- some people say that corrections have very slowly -- happened very slowly and suddenly. >> it could be, i use the example of team america. i'll use the example of groundhog day, it seems like you use up -- i have to predated references. every day we wake up and there is a new verbal bomb. between thehange u.s. and north korea.

at some point you get used to it. i think the market is there now unless you see a more visceral or literal manifestation of possibilities. in that case, that would be the trigger. -- if north korea were to shoot down or fire a missile at a u.s. were playing or a south korean warplane, that would be a very significant trigger. hopefully it doesn't happen. >> u-boat about a correction. when we -- you wrote about a correction. was it driven by the euro or the dollar weakness? >> the improvement in european economic situation has been a elimination of

the perceived political risk in europe, vis-a-vis marine le pen. in terms of the lack of tangible policy traction from trump's this go platform and his unpopularity was another. fact thatin the u.s. inflation flattened. you and his things up and you will have a big move. where we are now is we will have a little more of a political risk premium interior. -- into europe. you are on the issue, it is a pigs breakfast. one way ugly situation,

or another. paul is in italy and austria suggest that the far right populist parties are doing well. >> great to get your insight. coming up, protests temporarily shut down. we would hear the latest on the republican's latest attempt to repeal and replace much of obamacare. from new york, this is bloomberg. ♪

♪ >> let's get to first word news. the supreme court has canceled arguments for october 10 in dispute of the president trump travel ban. this after the president rolled out a new policy yesterday.

the order from the justices on both sides to wait invite oktoberfest about what to do with the case. the court has been ready to hear arguments about the legality about the 90 day dan on traveling from six muslim countries. on sunday. expired >> the nonpartisan congressional budget will revisit the gran cassidy health care -- health care bill. we will look into whether the bill increases on budget deficits in the long-term. an amendment to the bill is posted on the website. the cbo score well reflect that the original version. blueprints have said to be aimed out gopng hold senators. we shall barnier says the u.k. government must abide by all rules during a transition.

we will propose a two-year timeframe after a block. regulations and financial conditions and provision must be maintained without and obsession -- exception. anthony weiner must report to prison by september 6. after his sentence was announced, the democratic congressman from new york dropped his head into his hands and wept. he was fined $10,000. you must go internet monitoring and have no contact with his victim in a sex offender treatment program. global news, 24 hours a day, powered by more than.700 journalists and analysts in more than 120 countries. this is bloomberg. >> we have breaking news crossing the bloomberg, earnings are out and it looks like a pretty big feet. they put up seven cents.

they also beat on revenues. guidance is pretty solid for the third quarter. they are looking for a range between 777 million versus the estimate of 720 million. it looks like the competitor to microsoft -- lennox says they are doing -- linux says they are doing pretty well. doubleda stock that over the past five years. it continues to build on advances. is little hope for passage of the latest all plot -- obamacare repeal bill. the hearing on the controversial bill was disrupted from the start by loud protests from audience members. andcongressional budget specs have a pulmonary analysis of the bill later today.

alex, great to have you with us. there is little hope for prospects to the deal. you have to be pretty depressed that the prospect of getting anything through here are existing. what are the likelihood of any boat even happening -- vote happening this week? >> i don't even think a thinks -- the president it will work. he has thrown in the towel on this piece of legislation. the authors are doing strange things to try to draw votes from senator because it and senator collins. they are trying to throw money at states like maine and alaska, expensive, larger states like new york and california. >> julia was just mentioning that it is not out with the pulmonary analysis. doesn't matter what the analysis

is? it feels like the cdo is something that people dismiss on a regular basis. >> everyone knows the analysis will be back. tens of millions of people will lose health insurance under this bill. i think the cbo will particularly surprise anybody. they were ready to go to a vote on some earlier bills even though they had bad cbo scores. it may not matter that the score is bad but they do need the analysis. >> another big story, the white release alanning to framework for tax reform, the last time we had a believe it was april 26 and it was a one-page document. will this time be different? >> release this will be figure. the president is going to indiana on wednesday to give a taxes.peech on

we think there will be quite a bit of detail. the top andtline lowest brackets for personal income taxes where corporate income taxes will fall, maybe some changes on the deductions and some other top level stuff. >> the suggestion that we tend to work with -- perhaps we could see a tax cut for the highest earners in the country. chuck schumer said there is no way we are backing this. trump,oes that leave the net to pelosi, chuck schumer -- nancy pelosi, chuck schumer grossing? the president said that people like him should not be helped by this bill. the would rule out lowering top bracket from 35% 40%. that is exactly what was in this outline.

we think there is some pressure from the white house on congress to get rid of some of this stuff that would benefit higher earners and to make it really more in line with the promises that trump has made. i'll think that chuck schumer is speaking for his entire caucus when he says they're not go to go with a bill like we have seen outlined already. trump is going to indiana, home to joe donnelly, a democratic senator was one of the most endangered senators in 2018. that is one of the guys that my cross party lines. one more thing about the chuck and nancy show is that new york, new jersey and california may see state taxes taken away. that is not something we have heard about up until now. >> i want to bring you back to health care really quickly. does this refer to the former bill that graham kassidy cook lowered or the new revised version -- put forward or is it

the new revised version? >> this will be an analysis of the original bill. >> we wanted to check that. >> the blue state thing, that thealing is a big slap in face for 90 pelosi and chuck schumer. pelosi and chuck schumer. >> shinzo abe has announced snap elections. why now and what is his plan? we will be discussing that next, this is bloomberg. ♪

>> japanese prime minister shinzo abe announced a lower house of nations.

this comes as abe joined the spike in the handling of the north korean crisis. stephen engle has more. shinzo abe says the next three years to 2020 will be a. of intense investment. this is a hallmark of a economic stimulus package. this is 18 billion u.s. dollars. it will consider measures to encourage investors and increase wages. preschool education will be free. stephen engle, bloomberg news,

hong kong. of people whoe gap betweenhe approval and disapproval for shinzo abe's capital is pretty good right now. timing was he is capitalizing on a percentage points from declines earlier in the summer. investors around the world are looking for new places to put their money, we speak to one money manager who is attracted by emerging-market debt. from new york, this is bloomberg. ♪

emma: i am emma chandra. let's get to first word news. sarah sanders pushing back presidente claim that trump's tweet last week was a declaration of war. the u.s. and north korea are still technically at war. both sides agreed to an armistice at the end of the korean war, not a peace treaty. so-called sanctuary cities would be required to comply with

requests of law-enforcement to detain people suspected of being illegal immigrants. a judge has blocked most of the law. is headedjames mattis to india to discuss maritime security. mattis is the first cabinet level official from the trump administration to visit the country. the president's calls for a potential nfl boycott turned up a mixed bag of readings results. cbs saw a slight rise. it could be a side that competitive matchups rather than political controversy and have a greater impact on your ship. a blowout of the oakland

raiders. i am emma chandra. this is bloomberg. scarlet. scarlet: thank you so much. let's get a recap on the market action. declines for the s&p and dow, nsx the big loser. julia: "what'd you miss?" funds are investing in emerging market debt. our next guest says that ms is the place to be. joining us now, the cofounder and senior managing director at lm managing capital. great to have you on the show.

when specifically do you think investor should be focusing in when they are talking about emerging markets, because it's a big place. it is definitely a big place. you have to look for places that where they are good exporters, where they have a good internal market. right now, the main countries where you find good values are mexico, peru, chili. still south korea, although the rates are not great. you have to stay away from places like venezuela or countries like argentina that, for the past few years, have gone through major problems and are just getting back on their feet. julia: i heard some comments from you earlier this year. you were worried about some of the nafta tensions and headlines

around that. do you have the same level of holding or have your views changed since january of this year when some of the rhetoric was at its highest? guest: that's a good question. we still have large holdings in mexico because the fundamentals are very strong. harker's see companies are very profitable locally that have found a local market where they can raise money, that trumps up the risk of the nafta and other situations. is a headwind coming on, which is the election of next year because there is a who could be the next president of mexico. scarlet: of course you like emerging-market debt specifically. but corporate borrowing is

outstripping economic growth. that raises the question how long can this go on for? central banks in the u.s. and europe look to tighten. guest: in most of the american countries it you have seen the tightening already and people have responded positively. people are looking for yield. when the rates in the u.s. are at 2% and europe might be negative, they are looking for alternatives where they can get the 5% and 6%, get them close to their target in terms of the growth of their portfolio. in the good emerging countries, the good pay for the bad and you have very solid companies paying rates that are way above what you can get in the emerging markets for comparable risk. it seems while they are

absorbing the risks of the emerging markets, if we have tightening from the fed or the ecb -- if we do have the dollar rising, that certainly has been a big tailwind for e.m. this year -- low rates -- could that put a ripple to this really massive bull market? it could mostly for those companies that do not generate the dollars needed to pay back the debt. you have a exporters. brazil has 90% of their sales outside of brazil. companiesl of those that are issuing debt in mexico, etc., but are generating the dollars abroad, they have the best of both worlds. they can go back to their domestic markets where rates are higher, but they have their dollars they can use to pay off

their interest and their principal, and there is still quite a lot of appetite for ipo's, for new markets. so, i don't see these trying up, at least if rates do not go up dramatically, which i don't see happening in the u.s.. if you were talking at the year in 10%, i would not be concerned. if for whatever reason you thought it would go at 4.5% or 5%, i would be concerned. scarlet: what about reaching a deal with mexico. what does it mean for companies you are invested in? guest: welcome of the would like it. the u.s. market is the biggest market in the world. i do not think exports would dry up. i think the big loser would be the u.s. consumer that would be prices.igher

in the end, if you are in auto-parts manufacturer in mexico, you cannot just stop. making carsver stop in the u.s.. i think nafta is a win-win for both countries. i think get is not going to be canceled. it's going to be multiplied. .exico will be a winner will it adapts to it? yes, it will. get a temple for the election, what you pointed out? i know you like the banking sector. there are some good margins. just explain why you like this and where the opportunity lies. guest: peru is a very interesting country. it was ruled by a leftist in the last election -- between the extreme right and the extreme centrist,they chose a

a 77-year-old man who had a reputation for honesty. called itcentered, he down, and the responses been to unite behind him. they are working well. they are working hard. they have positive gdp growth. the whole thing is looking fine. that is what people would like to see, unification, not separation. maizel: all right, luis joining us from san diego. thank you so much. coming up, bruce springsteen tickets going for $2000 despite their face value. his wall street getting caught up in a ticketing scam? this is bloomberg. ♪

>> it is time for the bloomberg business flash. president trump's criticism of nfl player conduct during the national anthem have some questioning his own behavior on twitter. executive officer of a pany has something to say, and for more on ellen pao's tune in at 5:30 p.m. member -- i was the detroit lions. while nike has the main license

for it if including uniforms. alone a -- pittsburgh steelerlone sit on the field m stayed in the tunnels. he is in at army ranger. that is your business flash update. scarlet: for more details, let's bring in bloomberg's sports business reporter. we are seeing corporate sponsors taking a stand. for the first week four hours they were largely silent. is this good or bad for them to a saw how the under armour ceo got hit from one side and the other side when he tried to reframe his comments. >> sure. the nfl is in the same water that so many companies have been in. they are dragged into a conversation and they are in a

lose if you do, lose if you don't situation. they have to support the rights of players. it is a basic civil right. they will end up losing fans and that is unfortunate. scarlet: the ratings for yesterday fell games were fairly mix, but can this controversy be good for ratings? it can be and the way that there may be people out there who hate the way colin kaepernick was treated and you have owners backing up the basic right of what he did. that brings more people to the game. there are probably people it will turn away as well. julia: do think he will be back? reporter: colin kaepernick? sure. has proven over the past couple years to be a pretty good quarterback. julia: do you think he will be back? in the: i don't know, past, when players have taken controversial stands, their careers have ended. i had to explain to julia that

he was a quarterback that took his team to the super bowl. by rights, he should be a , if not auarterback backup quarterback on any team right now. reporter: it's hard to make an argument that he should not. scarlet: prime tickets to a bruce springsteen run on $10,000 on going for step up. investors are looking for a payoff in the low rate eightnment, but a couple name guys at not done very well with this. reporter: sure, yeah. -- springsteen always makes the headlines because it shows is a popular. it on the broker side, this is a fairly shady industry and there's very little rally -- regulation, which is how you get folks like michael dell, guys looking for profit, they can get suckered into this pretty easily. there is no regulation. there is no transparency. it's totally opaque.

if you are doing it well, you make a lot of money, which is why it is enticing to folks looking to make a quick rock. if we go on ticketmaster at 10 a.m. trying to get tickets -- julia: what is going on? was they get these tickets they can sell them for whatever price they like. reporter: sure. long before they go on sale to folks like you and i, there are folks with relationships with the artist, the venue, the promoter, they are getting tickets beforehand. the ticket as the gone sale to the public are a small percentage. those are people who did not pay fast -- face value. they had agreements beforehand. scarlet: it seems amazing to me individuals like paul peter jones, michael bell -- michael dell, somehow getting snookered for these schemes, perhaps

the return scarlet was talking about but it seems like they put the blinders on. reporter: absolutely. >> what is that about? reporter: it is all relationship based. if you have a guy who appears in social media photos, seems to be well-connected, it's a lot easier to believe, oh, i bet he 30 ticketsccess to to every a dell show. if you see these relationships socially, you think, oh, maybe they have these relationships professionally as well. how is this different from tickets to sporting events? if you are a season ticket holder and put your tickets on stubhub, you will never get a premium for it. you have to sell it regular prices. reporter: sure, the demand is so big. $75springsteen, they are

tickets going for $1400. that markup you will not see in sports all that much. that is one of the reasons adele, springsteen, hamilton when it was huge -- though shows always at the markup, the difference between face value and what the public is willing to pay is so different. julia: what are the rules? reporter: great question. julia: i know the attorney general in new york is doing an investigation. i refuse to believe there is not some form of regulation as far as at least controlling the computer aspects of it, if not .he friendly relationships arerter: the computers technically illegal. they are just very difficult to track when they are being used, how they are being used. >> you said it was a rigged system? riggedr: totally a system. and the industry is not 20 track who is using the bots.

-- is not trying to track who is using the bots. they are trying to build a system where the bots are irrelevant here it they are trying to figure out a way where people with the technology do not have an advantage. scarlet: what about the scalpers outside the sporting arena? the individual scalpers? what happened to them? reporter: it amazes to me that there are people who do what they do. there are people who will go to there insteady it on stubhub. they are still out there with the paper ticket in hand, trying to sell it. >> yet another group intermediated. that's our bloomberg sports business reporter. thank you for that. up next, protecting shareholder returns in the falling gold market with ceo gary goldberg. that interview is coming up.

from new york, this is bloomberg. ♪

julia: "what'd you miss?" producer of largest gold and expanding their production. we spoke with gary goldberg and collado springs. about what opportunities are ahead for the company. gary: for us, i think we have a great project pipeline. we have a number of projects for approval this year that will allow us to go above that level, but the focus is not really on

producing 5 million ounces. we deliver on that production. it is our value focus. to be theou be happy largest producer of gold in the world? gary: if we got to that, but i would rather be profitable. that is our focus. the fourth conference where i have asked you about australia. you said you would like to buy this. where is that? gary: basically what we read in the press. they are working through a process. i have watched in the press. we have got our budget for 2017 approved. we like the assets. if we can come to terms of some point, we would love to have the other half, but we will let them go through the process and see how that goes. >> it's not clear if the existing talks fall through walk away orwould

reopen the process. if they reopen the process, would it make sense to come up with more money and up your bid? see whereill have to things go, going forward. >> you are shaking your head area -- you are shaking your head. gary: [indiscernible] focus, we havehe a good project pipeline. we do not need to go external. the focus is on exploration in our advanced objects. where we keep an eye out is our earlier stage projects. we are thinking down the road. ours is a long-term business. talked to the seven-year guidance. we are looking 10, 20 years in the future, making sure we have things in the pipeline out there. >> on your conference call, you said you would like to meet with scott pruitt soon. what would you like to bring to

the administration? gary: what i heard him say last week was he was looking to make sure that the changes enable the certainty for businesses to make transitions. understand what we are trying to achieve, but let's do it in a logical way so we work towards this rather than just trying to do it abruptly. do it in a manner that recognizes the investments being made, the impact. you've got to look at that as well and see what the right path is to go forward. i think industry is where some of the gaps have been. strokes, isroader trump good for gold? for a while at election night, and it has gone the other direction. we will see. we continue to see where his administration comes down on different things. 40% of our businesses in the u.s. the other 60% is outside the u.s., so we pay attention to all of the countries. julia: that was danielle

ceo garywithnewmont goldberg. >> coming up, what you need to know about tomorrow. ♪

scarlet: "what'd you miss?"

declines in u.s. stocks, although the nasdaq was the big loser. do not miss this. the chair janet yellen speaking on inflation. we will bring you those remarks live. miss this -- don't president trump hosts the spanish prime minister tomorrow. >> and looking atnike. that does it for "what'd you miss?". technology is up next. >> have a great evening. this is bloomberg. ♪

alisa: i am alisa parenti in washington and you are watching "bloomberg technology." secretarye press sarah sanders says president trump's remarks and tweet last month were not a declaration of

war. north korea's foreign minister made the claim today after trump theed u.s. would destroy country if forced to defend itself or its allies. the minister says pyongyang has the right to shoot down u.s. warplanes. nonpartisan c.b.o. will issue a preliminary analysis of the health care bill today. a revision of the bill is on the website of senator bill cassidy. today's score will reflect just the original version. the retooled bill will aim to win over republican holdouts. the supreme court has canceled arguments set for october 10 in the dispute over president trump's travel ban. the justices requested both sides weigh in by october 5 on how to proceed. the ban expired sunday. it has been replaced by a new policy that impacts eight countries. florida keys officials say the island chain reopens to tourists october